Kingfisher Shares Fall 4.6percent After Staff Reject Salary Offer

Mumbai:Shares of Kingfisher Airlines tumbled by 4.6 percent on the bourses in morning trade after the employees rejected the airline's offer of payment of three months' salary. The scrip of the debt-laden carrier fell by 4.59 percent to hit the lower circuit limit of 10.40 in opening trade on the BSE. The shares were quoting at the same level in afternoon trade. Similar movement was seen on the National Stock Exchange, where the stock dropped by 4.61 percent to touch its lowest permissible limit for the day of 10.35. Kingfisher had yesterday offered its striking employees staggered payment of three months' salary dues before Diwali in mid-November in a bid to get them back to work but a section of the employees rejected the offer prolonging the 23-day impasse. Under the deal offered by the management, the salary dues of one month would be paid in 24 hours, another month's instalment in seven days and the third instalment before Diwali on November 13, sources had said, adding that efforts would be made to clear a fourth instalment by December. The operations of Kingfisher have been disrupted since September 30, first due to a strike by its engineers and pilots, then the lock-out declared by the management, which was followed by suspension of its flying permit by the Directorate-General of Civil Aviation (DGCA) on Saturday. The airline shares have dived more than 30 percent since Kingfisher was grounded. Meanwhile, the BSE's benchmark Sensex slipped by 20 points to trade at 18,773.73 points.